ENVE Urban Systems Practice Exam

A household earning less than 80% of the area's median income is considered...

Middle income Low income Upper income Very low income

Correct Answer:

Low income

Explanation:

This question is about how incomes are categorized using area median income (AMI) thresholds for housing policy. AMI represents the middle point of the income distribution in a region, and programs use percentage cutoffs to define income levels. The category defined as low income typically includes households earning up to 80% of AMI. Since the statement is about earning less than 80% of AMI, the appropriate label is low income. Very low income is usually reserved for those earning up to 50% of AMI, so that would apply only if the threshold were 50% or less.

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